Ambassador was called as the first Indian car. Ambassador was born in 1958 bought by Hindustan Motors. The design and technology resembles with the British car model: Morris Oxford. From 1958 to 1980 ambassadors ruled the Indian market. There were no more than two competitors in the Indian market at that time. They were Premier Padmini and Ambassador. After 1980, the scenario of this market totally changed. In 1983, Maruti Udyog Limited (MUL) launched Maruti 800. MUL had used very good marketing strategies to launch its product in the market. So, here ambassador had started losing its leadership position because of Maruti 800. But, Ambassador had some strong advantages over Maruti 800. This car, Ambassador, was made dearer to certain segments. This was the only diesel car available in India. Those times there was significant difference in the prices of diesel and petrol. So this made the brand to become popular among big families and more in Taxi’s. Though the car look sturdy and well build, the car lacked quality and refinements with many complaints of rattling sounds and rusting.
Other significant factor which ambassador possessed was its presence in government sector. Over 16% of these car sales came from government. This was the first choice of the bureaucrats. Soon, these higher official who used to buy Ambassadors lost interest in it as new and better models were offered by other automakers.
The fundamental issue was with its product and price. If we look at the product, the Ambassador, it has never changed with times. Many cosmetic changes were made in its three upgrades named Mark II, Mark III, and Mark IV but there were no value additions as such in these three upgrades. The look and the build quality remained the same.
The apathy of Hindustan Motors to offer product changes in tune with the time made the brand stale. The major drawback which made ambassador lose its position was its price factor. It was very expensive to maintain. Hindustan Motors never bothered to optimize the price of the brand. Even now Ambassador cost more than Rs.4, 80,000/- .At that price one can afford more luxurious sedan.
In 2000, Hindustan motors plant had full depreciation. But then also company did not reduced cost of its car. If today they would reduce their price with a good marketing strategy I think so they can survive for more years.
But this was not the end, in 2000 nail in the coffin came with the launch of TATA Indica. After all this there was only one market in which Ambassador can survive that was in the Taxi’s, Indica took this also that also with the diesel version.
There must be a continuous investment in branding and product development. Ambassador must also learn from Maruti 800. Maruti is still running because it had made various changes along with the changing consumer values. Also they have optimized their cost such that each and every class of people can afford it.
According to me, the only option to keep Ambassador alive is to keep its price at least below the price of Indica.
_____________Nikhil Ingale
No comments:
Post a Comment